Australian Court Accepts ‘Market-Based Causation’ Argument; Opens Door for More Shareholder Class Actions

Litigation funders and plaintiff-side law firms just received encouragement from an Aussie court to pursue more shareholder class actions. In the first-ever shareholder class action to make it all the way to a decision, Justice Beach determined that the theory of market-based causation – which states that the market efficiently prices company information, therefore shareholders do not have to rely on that information from the company – is indeed relevant.